THE SM Group said on Tuesday that the properties in Baguio that will be used for the extension of its SM mall was purchased as early as 1992 in a public bidding conducted by the Department of Environment and Natural Resources (DENR).
In a statement, SM said the purchase of the 34,528-square-meter lots adjoining the SM City Baguio was meant to protect SM properties from erosion as the adjoining lots have irregular terrain.
It said that prior to the auction of the 34,528 sq m lots, the Committee of Appraisal composed of the City Mayor of Baguio and the Community Environment and Natural Resources Officer of DENR-Cordillera Administrative Region, appraised the said lots at P1,500 per sq m which the Executive Regional Director of DENR-CAR approved at appraised value of P1,550.
SM, which offered a bid price of P2,027.34 per sq m or for a total amount of P69,999,995.52 for the 34,528 sq m lots, was declared the highest bidder on April 22, 1992. An Order of Award was issued to SM on May 5, 1992, the company having been declared as the highest bidder.
“Although the full payment for the purchase price was completed on April 2, 1997, the execution of the Deed of Absolute Sale was made only in 2011 because of the issue on certain portion of the bidded 34,528 sq m lots,” SM said.
“It was discovered that the 2,834 sq m portion of the lots occupied the right-of-way and that had to be excluded from the sale, so what was actually turned-over to SM was the remaining area of 31,688 sq m.”
On September 16, 2011, President Aquino formally made the execution o the Deed Absolute Sale for the 31,688 sq m for the same bid price for the original area of 34,528 sq m.
“The execution of the Deed of Absolute Sale by President Aquino was the ministerial function of the incumbent President since the subject lots were already fully paid as early as 1997,” SM added. “It could also be a part of the Aquino administration’s clean-up process on pending matters.
SM also made it clear that the sale of the Baguio properties was exempted from the payment of the capital gain tax because it was the government which sold the lots. “But SM paid the documentary stamp tax and the transfer tax for the 31,688 sq m lots.”
It added that the Certificate Authorizing Registration on the sale of the purchased lots was already issued by the Bureau of Internal Revenue of Baguio City.
